Iran’s Central Bank, Turkey’s ECO Bank sign cooperation deal

europe Iran cooperationTehran (ISNA) – The Central Bank of Iran has signed a cooperation agreement with Turkey’s ECO Trade and Development Bank that could pave the way for the multilateral lender to grant finances to Iran.

The agreement was signed during the visit of CBI Governor Valiollah Seif to Ankara. He was accompanied by Iran's ambassador to Turkey Mohammad Ebrahim Taherian-Fard, and CBI's secretary-general for international affairs Hossein Yaqoubi, who signed the deal with ECO's Vice president Burhanettin Aktas, Financial Tribune reported.

"Based on the agreement, conditions and regulations of the activities of ECO bank's representative office in Iran will be devised," the official news website of CBI reported.

As the central bank notes, signing the landmark agreement became possible following a directive by the Cabinet, which decrees that the processes for implementing the agreement must be finalized in a maximum three years.

In early September, President Hassan Rouhani's Cabinet allowed CBI to engage in negotiations and sign the "agreement of the host country" required for the ECO Trade and Development Bank to open a representative office in Iran.

As outlined by the central bank, the agreement will become legally binding following the required processes and the parliament's approval.

The agreement prepares the ground for the ECO bank to expand its activities in Iran and grant loans and finances to development projects in Iran.

"The bank will be able to have an effective role in the expansion of trade between the member states of the ECO organization," CBI writes.